=== Azul’s “Scammer” Warning & Disclaimers. PLEASE READ!! ===
Be careful of scammers. In the comments, I will NEVER suggest you contact me, offer any investment products, recommend an adviser or anything similar. Some scammers ask for investment help in the comments and later, other commenters post how “great that idea/investment/person is” in the replies. This is a scam. Do not fall for it.
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NEED Financial ADVICE?
1) Google “fee-only financial adviser” or visit www.NAPFA.org
2) #1 question to ask any financial adviser is “Are you a fiduciary to me 100% of the time” Get the answer in writing
3) Please note that some people call themselves “fee-based”. This is NOT the same as fee-only. Fee-only advisers have committed to being a fiduciary to you 100% of the time.
4) Speaking just for myself personally, I would only hire an adviser who is a fiduciary to me 100% of the time. This is not a suggestion on what you should do. We are all different and I do not know your personal situation.
MY VIDEOS ARE NOT FINANCIAL ADVICE (Disclaimer):
This information is provided to you as a resource for informational purposes only and should not be viewed as investment advice or recommendations. To get professional financial advice from a fee-only financial advisor near you, please visit www.napfa.org.
The decisions on how to invest, when to retire and other financial planning topics are some of the most important financial decisions you will make in your life. I urge you to seek professional financial advice as you make this decision. Ideally from a financial adviser, AND a CPA AND an attorney. Having the perspective of all three professions will help you make the decision that is right for you and your family.
This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor may NOT be suitable for all investors.
This information is NOT intended to, and should NOT, form a primary basis for any investment decision that you may make. Always consult your own legal, tax, and/or investment advisor before making any investment/tax/estate/financial planning considerations or decisions.
I don’t believe in “get rich” programs. Rather, I believe in doing your homework and working with professionals who are a fiduciary to you 100% of the time….(read more)
LEARN MORE ABOUT: 401k Plans
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As financial planning and Retirement have become increasingly important topics, the United States government has recognized the need to update retirement savings plans to meet the evolving needs of its citizens. The Setting Every Community Up for Retirement Enhancement (SECURE) Act, introduced in 2019, made significant changes to retirement plans, and now its successor, SECURE Act 2.0, is set to build upon those changes. Let’s explore some of the new 401(k) rules and benefits proposed under SECURE Act 2.0.
Automatic Enrollment and Expansion of Retirement Plans:
One key provision of SECURE Act 2.0 is the automatic enrollment feature. This feature allows employers to automatically enroll their employees in a retirement plan, increasing the likelihood that individuals will save for retirement. Furthermore, the act expands the availability of retirement plans to part-time workers, ensuring they have access to employer-sponsored retirement savings.
Increased Catch-Up Contribution Limits:
Under the SECURE Act 2.0, individuals aged 60 and above will be able to make higher catch-up contributions to their retirement plans. Currently, this provision allows for an additional $6,500 contribution, but the act aims to increase this amount to $10,000. This change recognizes the need for greater savings as individuals approach retirement age.
Greater Access to Annuity Options:
Another notable change brought by SECURE Act 2.0 is the incorporation of annuity options in retirement plans. Annuities provide individuals with a guaranteed stream of retirement income, helping to ease concerns about outliving their savings. This addition can potentially supplement other retirement savings and provide individuals with a more stable income after retirement.
Expanded Roth Conversions:
Roth IRAs have gained popularity due to their tax advantages, and SECURE Act 2.0 aims to further expand their usage. The act proposes allowing individuals to convert their traditional retirement plan assets into Roth accounts, ensuring tax-free distributions in retirement. This provision offers individuals greater flexibility in managing their retirement income and tax obligations.
Incentives for Small Businesses:
Recognizing the importance of retirement savings for all, SECURE Act 2.0 introduces incentives for small businesses to establish and maintain retirement plans for their employees. These incentives include increased tax credits for those businesses starting a retirement plan and allowing multiple small businesses to pool their resources to offer cost-effective retirement savings options.
Enhanced Student Loan Payments Using 401(k) Contributions:
To address the growing issue of student loan debt, SECURE Act 2.0 proposes allowing individuals to make 401(k) contributions while simultaneously paying student loans. This provision aims to assist young individuals in starting their retirement savings journey without neglecting their student loan obligations. By balancing these two financial commitments, individuals can achieve greater financial stability both during their working years and in retirement.
These are just a few of the new 401(k) rules and benefits proposed under the SECURE Act 2.0. If passed, this legislation aims to ensure that retirement planning remains accessible, flexible, and relevant to the evolving needs of individuals. It is essential to stay informed about such changes to maximize retirement savings opportunities and secure a financially stable future.
Important Updates on 401k Rules & Benefits: What You Must Know About SECURE ACT 2.0 appeared first on Inflation Protection.
